Does A Young Person Really Need Life Insurance?

young person’s need for life insurance depends less on age than on financial responsibilities, including dependents, shared debts and income that others rely on – Shutterstock

A young person does not automatically need life insurance. If nobody relies on that person’s income and no one would face a serious financial burden after their death, buying a policy may solve a problem that does not exist.

Life insurance serves a fairly specific purpose. It gives money to beneficiaries after the insured person dies, usually to replace income, cover obligations, or protect people who depended on that person financially. The National Association of Insurance Commissioners recommends looking at those actual responsibilities rather than choosing coverage based simply on age.